Entrepreneurship and Two Types of Human Action

The knowledge of Austrian economics will enable a would-be entrepreneur to see available tools for him to achieve his ends. In order to see them, it is important not to make a hasty decision based on emotion and impulses, but on rational assessment of cost and potential incentives.

There are times that in our desire for financial improvement, our minds are clouded due to the influence of emotion or impulses. These factors that cause us not to exercise our reason cautiously are usually excited by big promises of material improvement not founded on reality. People who are overwhelmed by their emotion are difficult to persuade to change their course. They are committed to the path that they thought is right. We sometimes wonder that even a person whom we know that thinks logically may at times fall into such emotional moment. It is as if reason has been suspended for a while to give in to the impulses of the moment. And this is exactly the reason why knowledge of Austrian economics is important for those who are really determined to venture into entrepreneurship. 

And so from the consideration above, we read that two types of human action exist - emotional or impulsive and rational. An emotional action is incapable to see the negative outcome of its choice. The only thing in mind is the achievement of ends regardless of the price. Once the emotional influence cools down, then reality sets in, and the man is now ready to use his reason intelligently. Once the spell of emotion disappears, a person is now ready to arrange his ends and to choose the appropriate means in achieving them.